S&P 500 Sector Performance (as of 9/30/09)

Chart of the Week for October 9 - 15, 2009

Similar to the stock market as a whole, returns for individual sectors of the stock market may go up and down. A sector may outperform over an extended period and then underperform in subsequent periods. The chart above compares the performance of the S&P 500 Index ("S&P 500") to its ten underlying sectors for the years ended September 30, 2008 and September 30, 2009. The S&P 500 is an index consisting of 500 companies representing larger capitalization stocks traded in the U.S.

For the year ended September 30, 2009, the overall S&P 500 fell 6.91%, with every sector except one posting a negative return. The losses over the last year occurred despite a gain of greater than 50% in the S&P 500 from the March 2009 lows to the end of the 3rd quarter of 2009. The only sector with a positive return over the last year was Information Technology, gaining 8.49%. Of all the sectors, the Financials sector retreated the most in the last twelve months with a drop of 23.52%.

In fact, the Financials sector was also the worst performer for the year ended September 30, 2008. During that time period, it declined 39.32%. Companies in the Financials sector like banks, insurance companies, and asset management companies were and still are severely impacted by the global credit crisis. A few of the companies in this sector even went bankrupt - most famously, Lehman Brothers, in September 2008.

Market and sector returns fluctuate from year to year depending upon a variety of factors, which are hard to predict. Therefore, it is important to understand the principles of investing before establishing an investment strategy to be sure that it is consistent with one's personal goals and time horizon.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

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The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.